Statement by Robert Wallace – TCCI Chief Executive Officer
Tasmania’s peak business body, the Tasmanian Chamber of Commerce and Industry (TCCI) has slammed the Government for its failure to rein in the health bureaucracy.
TCCI Chief Executive Robert Wallace said it was well known for at least 12 months that revenue was tight and savings would need to be found.
“It’s simply not acceptable that a Department can blow its savings target by $25 million, as has been the case with the Department of Health and Human Services,” Mr Wallace said.
“We know that budget savings are putting pressure on the health and education system, but if the savings are not made now there will be a greater crisis later as we add debt servicing costs into the mix,” Mr Wallace said.
“We are very disappointed that the balanced budget target of 2014-15 has been dropped. Instead of a $2 million surplus, we are now looking at a $96.4 million deficit for 2014-15. It’s not good enough.
“While the Report shows that Tasmania still has a budget management challenge, general economic conditions are more optimistic, with Treasury expecting unemployment to remain under six percent.
“Our advice to the Government and the public sector unions is simple. If you want to save front line jobs, then constrain your wage demands,” Mr Wallace said.
The TCCI’s Chief Economist Mark Bowles said that dealing with net debt was an overriding economic and social issue.
“In 2011-12 the Budget is just $53 million away from net debt. Another downward revision in revenue could see the Government needing to take interest-bearing loans, which then puts extra pressure on funds for health and education.
“The Mid-Year report also flagged a number of future risks to the budget such as the carbon tax, community sector wages and Tasmania’s GST entitlements. Government needs to continue to find efficiencies.
“Funds from the sale of public assets such as TOTE Tasmania need to be reinvested in infrastructure.
“While the TCCI supports orderly sales of government businesses, the proceeds must be directed to long-life public assets that benefit future generations,” Mr Bowles said.
For more information contact:
Robert Wallace – 0457 363 600
Mark Bowles – 0418 967 377